28-12-2012, 01:31 PM
Salem Co-Operative Sugar Mills LTD
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ABSTRACT
The purpose of this study is to analyze the performance of the salem co-operative sugar mills ltd. A financial statement analysis is an organized collection of data according to logical and consistent accounting procedure. Its purpose is to convey an understanding of some financial aspects of the business firm.
The analysis and interpretation of financial statement, therefore refers to such a treatment of the information contained in the income statement and the balance sheet. So as to afford full diagnosis of the profitability and financial soundness of the business.
The analysis means methodical classification of the data given in the financial statement. The interpretation means explaining the meaning and significance of the data simplified.
The research design is used as analytical design for this study. The period of the study from 2006-2007 to 2010-2011. The five years balance sheet and profit & loss account is required for this study.
The data collection methods are as follows.
Primary sources: observation, personnel interview, interaction, and discussion with manager and employees.
Secondary sources : secondary sources of data are collected from the five years audited annual report and the balance sheet and profit & loss account and other financial report and statements.
The four statistical tools is used for this study.
Ratio analysis
Comparative financial statement
Common size statement
Trend analysis
By used this tool the data should be analysed and interpreted. Then the findings of the problem is defined. With the help of findings valuable suggestions should be given to the company for their further improvement.